The S&P 500's Biggest Stocks Keep Getting Bigger. Here's the ETF I'd Buy to Diversify

Published August 25, 2026 · Category: Finance

Overview

Buying an S&P 500 index fund sounds like one of the easiest ways to diversify your money. After all, S&P 500 ETFs give you exposure to 500 of America's largest companies efficiently and with very little cost. In reality, they are easy ways to diversify, but there's a catch.

The S&P 500 is weighted by market cap. That means the largest companies in the index get the largest weightings. After years of huge gains in megacap tech stocks, the index has become more concentrated than it has at almost any point in history.

Details

Today, roughly 37% of the Vanguard S&P 500 ETF (NYSEMKT: VOO) is invested just in its top 10 holdings.

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Source

Originally published at www.fool.com.

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